Did you know that Google Cloud marketplace witnessed an explosive š 10X acceleration in 2020-2022 and continues growing 100% YoY today? Subhash Jawahrani, Principal BDM, Data Analytics at GCP Marketplace shared in our course insights on the GCP marketplace as a strategic growth driver for ISVs.
š¢ Incredible Growth of Google Cloud Marketplace
Today, GCP Marketplace is a multi-billion dollar per year transaction platform, expanding at 100% YoY. Its growth in 2023 alone was remarkable:
āļø Annual Contract Value (ACV) increased ~140%
āļø Co-Sell Bookings surged by 200%
ISV benefits from using its GCP marketplace are significant. On average, they experienced in 2023:
āļø 32% increase in their deal size
āļø 42% deal acceleration via the marketplace
āļø 70% of AI startups began their journey on Google Cloud, indicating a strong GCP preference
Subhash explains, āSometimes it can be as simple as just a procurement part of it, but a lot of the time it's engaging with the Google sales team, as soon as the deal cycle within the account."
āØ Marketplace as a Catalyst for GCP Adoption
The marketplace, previously an accelerator for existing partnerships, now itself attracts ISVs to initiate partnerships with GCP. Companies value customer access, commit utilization, and procurement benefits.
GCP sets itself apart by allowing 100% commit drawdown through its marketplace:
āCompared to our competitors, at Google Cloudā¦if a customer buys $100,000 of your product, they can retire $100,000 against their commitā
š¤ Crafting Successful Google Partnerships
Subhash highlights that successful partnerships often see CROs setting the marketplace goals and driving initial wins: āwhere they say, āhey, I'm going to take the goal for revenueā, and especially from the marketplace perspective, they say, āhey, I'm going to drive the first 25 wins through marketplace.ā
Other key elements for success include:
āļø Building a superior customer experience, requiring buy-in from product and engineering teams
āļø Integrating seamlessly with GCP native services
āļø Offering complete, differentiated solutions
šµ The Art of Co-Selling
Subhash emphasizes the importance of initial self-effort in co-selling, using a baseball analogy:
āYou have to get to first base by yourself. But once you get to the first base, we will make sure that you get to the home plate... a lot faster.ā
The benefits of turning marketplace into a habit could be remarkable:
āI had a couple of partners who just for one year did upsell. That means for any deal that went through marketplaceā¦one partner did 10% upsell, another partner did 25%. And that increased their marketplace to like 300 or 400%.
The biggest thing that it changed - the behavior of their sales from going direct to 100% the other wayā¦
Every opportunity would be registered with a cloud service provider, as well as every deal they would think about, going through marketplace.ā
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